The release of company results and some sharp price movements shook up the ICTOP10 listing this week, resulting in several changes in the top 10. Caribbean Assurance Brokers (CAB) topped the week, reporting record first quarter profit cheered by investors who pushed the price up by 44 percent to $2.88 and cleared the market of just about all supplies under $3. The stock sits in the number 7 spot, with potential for gains of 250 percent over the next twelve months.
CAB has been at the top of the TOP10 for several weeks going back to mid-March and now sits at the number 6 spot in spite of the substantial price gains, with ICInsider.com raising EPS to 50 cents from 45 cents. Taking over the number one spot is baker Consolidated Bakeries with Image Plus, that is in demand at number 2.
At the same time, ICInsider.com’s projection for Transjamaican Highway puts the stock into the Main Market TOP10 with projected earnings of 31 cents and a targeted price in the $6 region by early 2024 and replaces NCB Financial that got an earnings downgrade following the release of half year results showing earnings falling behind that for 2022, with a sharp fall in foreign exchange trading gains and increase loan loss provision.
Transjamaican headed the Market Watch list on April 29 this year. Then the price was at $1.77, with ICInsider.com indicating projected earnings of 24 cents per share and a short term price target of $2.40 and now the stock price is $1.85. The company released first quarter results on Friday, with profit of US$6 million.
Caribbean Assurance Brokers selling at a PE of just 7 based on historical earnings.
ICInsider.com has since adjusted earnings to 0.02 US cents per share or 31 Jamaican cents.
While the ICTOP10 Junior Market stocks had solid gains at the end of the week, the Main Market suffered several losses, with seven stocks declining.
Iron Rock Insurance jumped 22 percent to $2.29, Jamaican Teas rebounded from the previous week’s low by climbing 11 percent to $2.19 and dropped out of the TOP10 along with Everything Fresh having posted robust gains in revenues and profit for the March quarter, with investors welcoming the positive development by driving the stock up 14 percent to $1.89, with more to come. The company reported a profit of $35 million compared to just $7 million for the 2022 March quarter. IC Insider.com has since revised EPS for 2023, down to 25 cents from 30 cents previously, the combination of both of the above moves resulted in the stock moving out of the TOP10, but it still has more room for gains ahead. Lasco Distributors, one of the most undervalued stocks on the market, rose 4 percent to $2.68 but is trading at less than 6.4 times 2023 earnings of 42 cents per share and much lower based on earnings of 70 cents for fiscal 2024 has already started. After the March 2023 results are out, the EPS will switch over to the figure for 2024 and that would result in the stock holding the number 1 spot with likely gains above 400 percent. Image Plus rallied 4 percent to $2.20 and holds the number 3 spot on the TOP10.
Tropical Battery is the third stock to move out of the TOP10 with an earnings downgrade to 20 cents per share, following the release of half year results, showing a profit of $50 million, up from $30 million in the March quarter and from $87 million to $94 million for the half year. Dolla Financial, Edufocal and Dolphin Cove are this week’s new entrants to the Junior Market IC TOP10. Dolphin sits at the number 2 spot, with projected earnings of $3, following the 2022 full year results of 0.76 US cents or J$1.17 and will benefit from a sharp rebound in cruise ship arrivals, with the first 10 months last year being a fraction of what it was 2019 and the first quarter of 2020. This is in addition to increased stopover arrivals that will be greater than last year for a large part of the year.
The price of Main Market listed Key Insurance rose 8 percent to $3.40 to be the only stock of notable gains while Caribbean Producers dropped 8 percent in closing at $9.71, following release of nine months’ results that suggest that full year earnings from ongoing operations should end up around J$1.30 per share. Jamaica Broilers slipped 5 percent to $33.95 and Berger Paints fell 4 percent to $8.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. Interest rates fell below eight percent on BOJ CDs and Treasury bills this past week, paving the way for a cut in the Bank of Jamaica overnight rate. That will provide more invigoration for the Jamaica stock market, with the Junior Market posting gains for a third consecutive week, even as the Main Market suffered another week of a mild decline.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.8, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 259 percent, by May 2024, based on 2023 forecasted earnings.
The 15 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 27 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 10.8. There are nine stocks, or 19 percent of the market, with PEs from 15 to 26, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 248 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Investors exchanged 294,003 shares for $3,104,138 versus 229,004 stock units at $925,772 on Thursday.
At the close, Angostura Holdings increased 40 cents to close at $23.50 in an exchange of 3,470 shares, Ansa McAl ended at $50.90 with 93 stocks crossing the exchange, Ansa Merchant Bank closed at $46 with 100 units clearing the market, Calypso Macro Investment Fund remained at $22 after an exchange of 200 stocks. First Citizens Group shed 21 cents to end at $49.76 after a transfer of 425 stock units, FirstCaribbean International Bank lost 22 cents in closing at $7.02 with an exchange of 500 stocks, GraceKennedy ended at $3.98 after 9,358 shares passed through the market, Guardian Holdings declined $1.42 to $22 after 12,324 units were traded. JMMB Group remained at $1.47 as investors exchanged 15,222 shares, Massy Holdings dipped 5 cents to close at $5.10 following the trading of 166,804 stock units, National Enterprises ended at $3.74, with 26,300 units changing hands, National Flour Mills rose 16 cents in closing at $1.61 after shareholders traded 8,532 stocks. NCB Financial fell 40 cents to end at $3.50 while exchanging 14,600 stocks, 
One Caribbean Media ended at $3.82 in switching ownership of 2,808 stock units, Point Lisas remained at $3.27 in trading 185 shares, Prestige Holdings ended at $7.90 with a transfer of 240 units. Republic Financial remained at $134 with investors trading 4,319 stock units, Scotiabank popped 4 cents in closing at $77.49, with 10,005 units crossing the market, Trinidad & Tobago NGL dipped 1 cent to $19 after an exchange of 4,750 stocks. Trinidad Cement shed 8 cents to end at $3.35 in an exchange of 1,650 shares, Unilever Caribbean ended at $15.99 with shareholders swapping 6,933 stock units and West Indian Tobacco fell $1 in closing at $15 while exchanging 5,185 shares.
Investors exchanged 373,347 shares for $3,390,454, down from 2,356,514 stock units at $8,168,022 on Tuesday.
At the close, Angostura Holdings ended at $23.10 after an exchange of 43,196 shares, Ansa McAl closed at $50.90 in an exchange of 42 units, Ansa Merchant Bank ended at $46 as 100 stocks cleared the market, Calypso Macro Investment Fund remained at $21.52 in an exchange of 131 units, Endeavour Holdings rallied 13 cents and ended at $11.15 with 5,000 shares clearing the market. First Citizens Group gained 2 cents in ending at $49.99, with 743 units crossing the exchange, FirstCaribbean International Bank shed 3 cents to end at $7.21, after an exchange of 2,101 units, GraceKennedy remained at $4.04 in an exchange of 100 stocks, Guardian Holdings slipped 17 cents to end at $23.42 with shareholders swapping 95 shares. JMMB Group fell 7 cents to $1.40 after trading 2,600 stock units, L.J. Williams B share ended at $2.74 with an exchange of 100 units, Massy Holdings climbed 8 cents to $5.13 after a transfer of 87,316 stocks, National Enterprises rose 1 cent and ended at $3.74 with a transfer of 125,000 stock units. 
National Flour Mills dipped 5 cents in closing at $1.45 in trading 300 units, NCB Financial slipped 10 cents to end at $4.10 in switching ownership of 60,101 stocks, One Caribbean Media gained 12 cents in closing at $3.82 after an exchange of 1,178 shares. Point Lisas popped 1 cent to end at $3.27 with investors transferring 108 stocks, Prestige Holdings remained at $8 and closed with trading of 443 stock units, Republic Financial rallied 24 cents to close at $134.24, with 556 shares crossing the market. Scotiabank shed 30 cents and ended at $77 as investors exchanged 5,745 units, Trinidad & Tobago NGL ended at $19.01, with 371 stock units crossing the market, Trinidad Cement fell 14 cents to $3.35 in an exchange of 1,000 stocks and Unilever Caribbean shed 1 cent to end at $15.99 in an exchange of 37,021 shares.
Investors traded 2,356,514 shares for $8,168,022 up from 144,767 stock units at $2,003,188 on Monday. An average of 124,027 units were traded at $429,896 compared with 7,238 shares at $100,159 on Monday, with trading month to date averaging 31,259 shares at $204,561 up from 14,631 units at $164,176 on the previous day. The average trade for April amounts to 17,776 shares at $261,442.
At the close, Angostura Holdings declined by 40 cents to close at $23.10 in switching ownership of 4,720 shares, Ansa McAl dipped 10 cents to close at $50.90, with 458 stocks crossing the market, Calypso Macro Investment Fund gained 2 cents to end at $21.52 after a transfer of 200 units. Eppley Caribbean Property Fund ended at 71 cents in an exchange of 1,170,710 shares, First Citizens Group rose 21 cents to $49.97 in trading 1,565 stocks, FirstCaribbean International Bank slipped 1 cent to close at $7.24, with 17 units crossing the exchange, GraceKennedy lost 2 cents to close at $4.04 after investors exchanged 497,735 shares. Guardian Holdings remained at $23.25 with an exchange of 835 stock units, Guardian Media ended at $2.30, with 1,600 stock units clearing the market, L.J. Williams B share remained at $2.74 as 107 units passed through the market, Massy Holdings dipped 4 cents in closing at $5.05 in an exchange of 29,514 shares. 
National Enterprises ended at $3.73 after 499,635 stocks changed hands, NCB Financial popped 10 cents to $4.20 as investors traded 315 stock units, Point Lisas fell 40 cents to $3.26, with 380 shares crossing the market, Republic Financial remained at $134 with investors trading 4,168 stocks. Scotiabank ended at $77.30 with a transfer of 2,665 units, Trinidad & Tobago NGL popped 1 cent to close at $19.01 with 2,538 stock units changing hands, Unilever Caribbean shed 68 cents to end at $16 after an exchange of 129,352 units and West Indian Tobacco remained at $16.50 with shareholders swapping 10,000 stocks.
Investors exchanged just 144,767 shares for $2,003,188, up from 78,721 stock units at $949,405 on Friday.
At the close of trading, Agostini’s remained at $64, with 1,264 shares changing hands, Angostura Holdings ended at $23.50 while trading 12 stocks, Ansa McAl shed $1.90 to end at $51 after a transfer of 1,254 stocks, Calypso Macro Investment Fund declined 50 cents to $21.50, with 4 units clearing the market. First Citizens Group ended unchanged at $49.76 as investors traded 954 units, FirstCaribbean International Bank remained at $7.25, with 1,199 units crossing the market, GraceKennedy dipped 8 cents to end at $4.06 after an exchange of 65,880 stocks, Guardian Holdings fell $1.40 in closing at $23.25 after investors swapped 200 shares. Guardian Media ended at $2.30 in an exchange of 43 units, JMMB Group dipped 2 cents to $1.47 in trading 2,508 stock units, Massy Holdings remained at $5.09 with investors transferring 30,372 shares, National Enterprises slipped 1 cent to $3.73, with 14,963 stocks crossing the market. 
NCB Financial ended at $4.10 after 725 units passed through the market, One Caribbean Media remained at $3.70, with 10 stock units crossing the exchange, Prestige Holdings remained at $8 with a transfer of 1,921 shares, Republic Financial lost $1 to end at $134 and closed after an exchange of 6,936 stocks. Scotiabank shed 19 cents in closing at $77.30 in an exchange of 1,174 shares, Trinidad & Tobago NGL dipped 87 cents and ended at $19 after 6,900 stocks changed hands, Unilever Caribbean fell 29 cents to close at $16.68 with an exchange of 1,470 stock units and West Indian Tobacco ended at $16.50 in trading 6,978 units.
At the previous week’s close, Image Plus released solid full year results showing profit after tax that jumped 125.6 percent to $213 million or 21 cents per share. Based on those numbers, ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously. On Monday, the company reported revised results, with the profit being even higher at $252 million, with a reduction in the amount previously booked as professional fees. Based on the revision, projected earnings were raised by the publication to 40 cents per share for the current fiscal year. The stock sits at the number three spot in the ICTOP10. The revision raises some serious questions about how such matters escaped the directors, auditors and the financial controller before the audited financial statements were released.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
Investors traded just 78,721 shares for $949,405, down from 596,757 units at $4,726,471 on Thursday.
At the close, Angostura Holdings fell 70 cents to end at $23.50, with 1,263 shares changing hands, Ansa McAl slipped 10 cents to close at $52.90 after 15 units crossed the exchange, Calypso Macro Investment Fund increased 50 cents to end at $22 as investors exchanged 28 stock units. First Citizens Group lost 24 cents in closing at $49.76 in an exchange of 222 stocks, FirstCaribbean International Bank ended trading at $7.25 after exchanging 420 shares, GraceKennedy dipped 1 cent in closing at $4.14 after trading 10 units. Guardian Holdings declined 40 cents in ending at $24.65, with 12 stocks clearing the market, JMMB Group rallied 1 cent to $1.49 after 491 stock units crossed the market, Massy Holdings rose 9 cents to $5.09 in switching ownership of 4,548 units. National Enterprises remained at $3.74 with an exchange of 53,449 stocks, 
National Flour Mills remained at $1.50 while exchanging 3,000 stock units, One Caribbean Media ended at $3.70 after 97 shares passed through the market. Prestige Holdings remained at $8 with a transfer of 91 units, Republic Financial dropped 58 cents to end at $135 with 3,509 shares changing hands, Scotiabank ended at $77.49 after a transfer of 54 stocks. Trinidad & Tobago NGL shed 23 cents to close at $19.87 in an exchange of 2,012 stock units, Unilever Caribbean gained 37 cents to end at $16.97 in trading 3,483 shares and West Indian Tobacco remained at $16.50 with investors transferring 6,017 units.
Investors traded 412,485 shares for $6,011,700 compared to 96,512 stock units at $2,228,161 on Monday.
At the close, Angostura Holdings dipped 19 cents in closing at $24.20 after an exchange of 80 shares, Ansa McAl fell $4 after ending at $49, with 11,058 units crossing the market, Ansa Merchant Bank climbed $3.64 to close at $46, with 1,020 stocks changing hands, First Citizens Group ended at $50 with an exchange of 5,967 stock units. FirstCaribbean International Bank rose 1 cent to $7.25, with an exchange of 6,810 stocks, GraceKennedy popped 5 cents to end at $4.15 while exchanging 61,850 stock units, Guardian Holdings remained at $25.05 as investors exchanged 112,336 shares, JMMB Group dropped 5 cents to close at a 52 weeks’ low of $1.45 after the trading of 29,024 units. Massy Holdings rose 19 cents to close at $4.99 in switching ownership of 50,544 stock units, National Enterprises shed 7 cents in closing at $3.65 after a transfer of 33,710 units, 
National Flour Mills rallied 5 cents to end at $1.50 in trading 65,000 stocks, NCB Financial declined 5 cents to $4.02 with 2,480 shares clearing the market. Republic Financial rallied $1 to $136 in an exchange of 7,390 shares, Scotiabank remained at $77.49 after 30 stocks changed hands, Trinidad & Tobago NGL lost 1 cent in closing at $20 as investors swapped 16,107 units. Unilever Caribbean advanced 45 cents in closing at $16.25 as 6,826 stock units passed through the market and West Indian Tobacco shed 5 cents to end at $16.45 with investors transferring 2,253 shares.
There were no significant winners for the past week in both markets’ TOP10 as losers dominated. The Junior market had Consolidated Bakeries falling 11 percent to $2.17 and general Accident down 10 percent to $5.40 and Lasco Distributors down 3 percent, with the stock selling at just 5.5 times 2023 estimated earnings and only 8.5 times the company’s nine month results. By any stretch, the stock is considerably undervalued and there are more profits to come in the current fiscal year.
At the week’s close, Image Plus released full year results showing profit after tax jumping 125.6 percent to $213 million or 21 cents per share. ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously.
The 18 highest valued Main Market stocks are priced at a PE of 15 to 115, with an average of 29 and 20 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
Investors exchanged 179,420 shares for $2,037,583, down from 338,683 units at $7,254,285 on Thursday.
At the close, Agostini’s ended at $64 after 3,017 shares changed hands, Angostura Holdings popped 44 cents in closing at $24.39, with 24 stock units clearing the market, Ansa McAl remained at $53 in trading 496 units, Ansa Merchant Bank ended at $42.36 after a transfer of 200 stocks. First Citizens Group dipped 1 cent to $50 as 70 stocks passed through the market, FirstCaribbean International Bank increased 2 cents in closing at $7.24 as investors exchanged 1,173 stock units, GraceKennedy remained at $4.20 in an exchange of 4,045 units, Guardian Holdings remained at $25.05 with investors transferring 1,364 shares. JMMB Group dipped 1 cent to $1.50 after an exchange of 11,438 units, Massy Holdings popped 5 cents to $4.75 with the swapping of 85,993 shares, National Enterprises fell 1 cent in closing at $3.72 after exchanging 14,579 stocks, National Flour Mills rallied 5 cents to $1.50 while trading 20 stock units. 
NCB Financial advanced 11 cents to close at $3.99 with an exchange of 8,252 shares, Point Lisas ended at $4.30 in switching ownership of 2,283 stocks, Prestige Holdings remained at $8 after an exchange of 1,186 stock units, Republic Financial shed 50 cents to close at $135, with 4,897 units crossing the exchange. Scotiabank gained 49 cents in closing at $77.49, with 689 shares changing hands, Trinidad & Tobago NGL rose 99 cents to $19.99 after an exchange of 18,582 stocks, Trinidad Cement ended at $3.50 with a transfer of 14,946 units, Unilever Caribbean popped 15 cents to end at $15.75 in trading 6,000 stock units and West Indian Tobacco lost 2 cents in closing at $16.48, with 166 stock units crossing the market.